This article examines the factors which impact upon the creation of a school environment for the effective management of cultural diversity as legislated for in the directive principles of the South African Schools Act of 1996 and the Schools Education Act of 1995. The two Acts determine that every person shall have the right to basic education and to equal access to schools and centers of learning. It is within this framework that this research was undertaken employing a quantitative research method. The research demonstrated that a school environment for the effective management of cultural diversity can be achieved through creative approaches to professional management and school governance, characterized by a collaborative management style. Managing cultural diversity can often be complicated by communication problems and stereotyping due to differences based on moral, ethical, socio-political and economic issues. The previous divisions of schools under the pre-1994 regime according to departments of education and mother tongue were found to be both statistically and substantially significant as independent variables for the management of cultural diversity. (Contains 1 figure and 6 tables.)